Salary is only one part of the test
Some salaried employees are exempt from federal overtime, while others are nonexempt and must receive overtime when the federal requirements apply. The answer depends on the specific exemption, not the word "salary" on a pay statement.
For executive, administrative and professional exemptions, federal rules examine how the employee is paid and what the employee actually does. A title such as manager, administrator or professional does not settle the issue. Each exemption has its own duties requirements.
This guide does not list a salary threshold because official amounts can be affected by court decisions and regulatory changes. The current U.S. Department of Labor materials should be checked at the time the classification is reviewed.
A title that does not answer the question
State exemption tests can be more protective
A state can require a higher salary level, apply a different duties test or protect additional workers. When federal and state law both cover the work, each test needs review.
Use the State Overtime law directory, then confirm the current exemption rules through the state's official labor agency listed in the U.S. Department of Labor state office directory.
What the calculator can and cannot do
The overtime calculator can estimate pay after the user supplies hours and a rate. It does not classify a job, decide which exemption applies or replace a review of salary and duties requirements.
Common questions
Does salary mean unlimited hours without overtime?
No. A salaried employee can remain nonexempt. If no exemption applies, covered hours over 40 in a workweek can require overtime pay.
Does a job title decide exemption status?
No. Federal guidance looks at the employee's actual duties and the applicable pay requirements. A title cannot establish an exemption by itself.
Can a salaried employee use the overtime calculator?
The calculator can illustrate hours and rates, but it cannot decide exemption status or determine the correct regular rate for every salary arrangement.
Can a salaried employee be nonexempt?
Yes. Salary is a method of pay, not an automatic exemption. A worker who does not meet an exemption can be salaried and still retain overtime protection.
Can state law provide a stronger rule?
Yes. A state can use a more protective salary test, duties test or overtime rule. Both federal and state requirements must be checked.
Sources & Review
Last reviewed: August 2026
This page is based on information from the U.S. Department of Labor and the applicable state labor agency.
- U.S. Department of Labor Fact Sheet #17A, White-Collar Exemptions
- U.S. Department of Labor Fact Sheet #23, Overtime Pay Requirements
- U.S. Department of Labor, Overtime Pay
- U.S. Department of Labor, State Labor Offices
State Overtime is an independent educational calculator and is not a law firm or government agency.